March Best Growth Stocks
Robust, high-growth companies such as Horizon North Logistics are appealing to investors for many reasons. They bring about a strong upside to your portfolio, and less downside risk as opposed to financially challenged companies. I would suggest taking a look at my list of companies that compare favourably in all criteria, and consider whether they would add value to your current portfolio.
Horizon North Logistics Inc. (TSX:HNL)
Horizon North Logistics Inc., a remote resource development service company, provides workforce accommodation solutions, camp management and catering services, and road and access matting solutions. The company currently employs 1196 people and with the stock’s market cap sitting at CAD CA$271.99M, it comes under the small-cap group.
HNL is expected to deliver an extremely high earnings growth over the next couple of years of 93.96%, driven by a positive double-digit revenue growth of 29.20% and cost-cutting initiatives. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 3.29%. HNL’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Thinking of investing in HNL? Take a look at its other fundamentals here.
Points International Ltd. (TSX:PTS)
Points International Ltd. provides e-commerce and technology services to loyalty program operators in the United States, Canada, Europe, and internationally. The company currently employs 211 people and has a market cap of CAD CA$201.84M, putting it in the small-cap category.
PTS’s forecasted bottom line growth is an optimistic 36.66%, driven by the underlying double-digit sales growth of 14.69% over the next few years. Though some cost-cutting activities may artificially inflate margins, it appears that this isn’t solely the case here, as profit growth is also coupled with top-line expansion. Moreover, the positive 0.80% growth in operating cash flows shows that a decent part of earnings is driven by robust cash generation from operational activities, not one-off or non-core activities. PTS’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Could this stock be your next pick? Other fundamental factors you should also consider can be found here.
AGT Food and Ingredients Inc. (TSX:AGT)
AGT Food and Ingredients Inc. produces and exports pulses, staple foods, and food ingredients worldwide. Started in 2009, and currently lead by Murad Al-Katib, the company now has 1,900 employees and with the market cap of CAD CA$403.78M, it falls under the small-cap stocks category.
AGT’s forecasted bottom line growth is an exceptional triple-digit, driven by the underlying double-digit sales growth of 3.75% over the next few years. Although reduction in cost is not the most sustainable operational activity, the expanding top-line growth, on the other hand, is encouraging. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a positive return on equity of 8.04%. AGT ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Should you add AGT to your portfolio? I recommend researching its fundamentals here.
For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
